Hakkinen

But the team's engine partner Mercedes said a decision on Hakkinen's future was expected before Sunday.

Neither McLaren nor the Finn's manager Keke Rosberg could confirm the 32-year-old would drive for the British-based outfit next season. Mercedes said a decision would be announced at the Italian Grand Prix on Friday or Saturday.

"We wanted a decision as quickly as possible," Norbert Haug, the motorsport boss at Mercedes, told SID news agency.

The report in Thursday's edition of Germany's Bild newspaper said Hakkinen was set to announce his retirement at this weekend's race and would be replaced at McLaren by his compatriot Kimi Raikkonen.

Although Raikkonen's contract with his current team, Sauber, runs until 2003, the report said McLaren would buy it out for more than $10 million. The paper said the Raikkonen deal was nearly concluded and everything would be wrapped up by Saturday.

"We expect to make an announcement from our side at Monza," Mercedes board member Juergen Hubbert was quoted as saying.

A spokeswoman for McLaren said: "We have not made an official statement on our driver line-up for 2002."

Rosberg declined to comment on the report.

"Any news with respect to contracts will be announced by the team," 1982 champion Keke Rosberg told Reuters. "McLaren will make an announcement when it suits them.

"It is not my duty to discuss the subject, my duty is to complete contracts on behalf of Mika and that's as far it goes."

This latest speculation follows 10 months of rumors that the 1998 and '99 world champion was driving in his last season in Formula One.

Hakkinen, who has spent 11 years in Formula One, has had a disappointing year, winning just one race and taking 24 points in 13 races so far compared to teammate David Coulthard's 57.

Just before the British Grand Prix in July, he said he was close to agreeing a deal with McLaren for 2002 and three days later he won his first race in 11 months at Silverstone.

He admitted in August he had considered retirement earlier this year and Coulthard has said he thinks he will have a new partner at McLaren next year.

Peter Sauber confirmed last week that he had discussed Raikkonen with Mercedes.